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Introduction

The congestion charge was introduced in London in 2003. Subsequently, charges for ‘clean air zones’ or ‘ultra low emission zones’ have been introduced by some local authorities; these typically apply charges in respect of vehicles whose emissions exceed certain levels. There is no specific tax legislation relating to either the congestion or ‘clean air’ etc zone charges. The tax treatment of the reimbursement or the payment of such charges is covered by the general legislation covering either the payment of pecuniary liabilities or the payment of expenses.

Congestion and clean air zone charges

The congestion charge applies to the majority of motor vehicles either driven or parked on certain roads at particular times within London. This treatment of the congestion charge also applies to other road tolls, such as the M6 Toll road charge, as well as any local authority ‘clean air zone’ charges.

There are three key questions for an employer:

1. •

   who is the registered owner of the vehicle which is subject to the charge?